Construction Law/Price Adjustment


Dear Sir,

In accordance with Sub-Clause 14.3 of FIDIC MDB Harmonized Conditions of Contract 2010 edition,
“The Contractor shall submit a Statement in six copies to the Engineer after the end of each month”

Is the submission of Statement at the end of each month is binding on the Contractor? Is the Contractor can submit Statement other than one month period?

My second question relates to Sub-Clause 13.8 [Adjustment for changes in Cost], this Sub-Clause states,

“ “Ln”, “En”, “Mn”, … are the current cost indices or reference prices for period “n”, expressed in the relevant currency of payment, each of which is applicable to the relevant tabulated cost element on the date 49 days prior to the last day of the period (to which the particular Payment Certificate relates); and”

If the Contractor submit Statement for the period of 3 months, then is it correct to use indices applicable on 49th from the last day of the period? Or is it necessary to divide the works month wise in order to apply indices separately for each month?   

Thanking you in anticipation.


Umer Shabbir

Dear Umer Shabbir,

1. The Contractor can choose any period that suits him, provided that it is greater than one month.  Often there is a minimum value for the IPC and it can be hard to reach this minimum value, within a calendar month, at the beginning and end of the Time for Completion.

2. What don't you understand about "each of which is applicable to the relevant tabulated cost element on the date 49 days prior to the last day of the period (to which the particular Payment Certificate relates)”.  It does not say 'the last day of each individual month making up the period'.   It is correct to use the indices on the 49th. day prior to last day of the period (to which the particular IPC relates).

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Peter M. Elliott


First response to queries regarding extensions of time, variations orders, site instructions and payment using FIDIC and other forms of Conditions of Contract, based on English Law, and derivatives only. Anyone who needs advice about EoT should download and study the SCL Delay & Disruption Protocol before submitting a question.


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Institution of Civil Engineers, Association of Chartered and Certified Accountants, Society of Construction Law, Dispute Resolution Board Foundation

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